Italy's short-term funding cost reached a record low at today's auction as investors hope to see an end to the political deadlock.
The treasury sold EUR 8 billion treasury bills at a yield of 0.503 percent, down from the 0.831 percent yield logged at a similar auction last month.
However, demand slowed slightly compared to the previous issue. The bid-to-cover ratio fell to 1.4 from 1.64 in the prior month.
The treasury will offer 5- and 10-year BTPs next Monday, to raise EUR 6 billion.
Prime Minister-designate Enrico Letta started talks to form a broad coalition government, with the centre-right People of Liberty party to which Silvio Berlusconi belongs.
For comments and feedback: editorial@rttnews.com